Contract Management


Managing contracts can be an underestimated discipline. But Contract management is the process of managing contract creation, execution, and analysis to maximize operational and financial performance within an organization, all while reducing financial risk. 

All business agreements should be finalized with a contract. To mitigate any risk in those agreements and create strategic relationships, contracts should be managed professional with focus on important topics, such as: 

  • Initial requests. The contract management process begins by identifying contracts and associated documents/templates to achieve compliance to contract.
  • Identifying Contract amendments and clarifications during tender phases and contract negotiation.
  • Prepare contract negotiation – including researching the other party’s needs before the negotiation to simplifie the process and create a strong foundation for a lasting relationship.
  • Pricing structures – identifying key items for pricing structures
  • Milestone achievement and payment schedule 
  • Review of contract – risk identifications, process procedure requirements, general terms & conditions, escape clauses, contract options & requirements, back-to-back and/or flow down to sub-suppliers (wrt. HSE&Q, scope, time, cost, penalties, LDs, reporting requirements, audit, compliance requirements, handover, warranty). Ensure the individual topics are transferred to the needed frames for execution of the contract.  
  • Execution of contract – ensure fulfilment of contract obligations during execution, interface management, governmental interface, ensure compliance towards sub-contractor(s), variations – and claim management, continuously lessons learn for futures contracts and/or implementations of generic contract templates. 
  • Monitor any potential changes or breaches of contract.

 

If you’re in need of a Contract Manager or interested in a dialog on how a Contract Manager can benefit your Company – Contact V2E.